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Live Sports Radio looks to tune in broader audience

Photo by PHOTO COURTESY OF LIVE SPORTS RADIO LLC
Live Sports Radio has gotten the ear of a lot of sports fans, such as this spectator at the U.S. Open golf tournament. After broadcasting at a medical conference, the Rochester Hills company wants to expand beyond sports.

When fans enter Radio City Music Hall in New York City on May 8-10 for the National Football League draft, they won't miss the copious commentary about this year's picks, thanks to a local vendor.

Rochester Hills-based Live Sports Radio LLC is supplying NFL-branded pre-tuned radios for the event so attendees can hear delay-free broadcast coverage by ESPN and the NFL Network.

The personal radios with earbuds are designed to enhance the fan experience with in-venue broadcast coverage, bridging the gap between watching at home and in the stands.

Live Sports has supplied radios to many of North America's largest sporting events, including the Super Bowl and the U.S. Open golf and tennis tournaments.

But after a successful broadcast at last year's Transcatheter Cardiovascular Therapeutics conference in San Francisco and Howard Stern's Birthday Bash in New York City in January, Live Sports is looking to expand beyond sports. Live Sports is considering a dba called Conference Audio Solutions to capitalize on the evergreen conference circuit, said Jim Knapp, president.

"Sports have seasons, but there isn't an offseason in the conference world," Knapp said. "There's a big opportunity for rapid growth."

Live Sports Radio, with nine employees, is expecting near $5 million in revenue in 2014 and has experienced 20 percent bottom-line growth since 2010.

At the cardiovascular event, video and presentation materials for three different halls were projected into one main hall. Attendees could then use Live Sports' radios, which are sourced from Asia, to listen to the presentation of their choosing.

Craig Erlich, CEO of Ferndale-based meeting and event planning and marketing company pulse220, said conference attendees are demanding the personalized experience they currently receive in music, TV and other technology.

"I think it's brilliant because it personalizes the experience for the attendee and puts the control in their ear," Erlich said.

The Live Sports concept was originated in 2000 when an English MBA student submitted the idea in a case study competition. Because most sports coverage in England comes from the BBC, Sound Decisions Ltd. was launched to carry ancillary sports coverage during rugby and soccer matches.

In 2007, the University of Michigan requested Sound Decisions' services for football games at Michigan Stadium. A year later, Troy-based investment firm TMW Enterprises Inc. acquired the North American rights to the technology, rebranding it as Live Sports Radio.

Live Sports built its college football client list to 25 teams, but it abandoned much of the effort due to the guaranteed revenue sharing with the universities, Knapp said.

It has since created new contracts with the University of Alabama, Auburn University and the University of Southern California under which the schools buy the radios from Live Sports and sell them to fans for $20 to $25.

When terrestrial radio stations transitioned into high-definition radio, Live Sports Radio's business model started to make sense to sports franchises, Knapp said.

"More and more stations were switching to HD radio, which sounds amazing, but delay became an issue during live events," Knapp said. "Sports fans were still bringing in transistor radios for various broadcast coverage, but with a 5- to 7-second delay, listening is intolerable."

Live Sports signed contracts with American Express Inc. to provide broadcast coverage for card-holding fans at the U.S. Open golf and tennis tournaments as well.

"(American Express) wanted to provide premium content for their cardholders, which created cachet on the grounds for the identified members," Knapp said. " 'Swipe your card, get a radio' has become a staple for those events over the past few years."

Live Sports shipped 165,000 units to PGA events last year, including the Ryder Cup and PGA Championship, up from 10,000 in 2009.

Its total work for American Express events topped 250,000 last year.

At this year's NFL draft, attendees will receive a Live Sports radio on which they can hear broadcast coverage while attending.

"The draft can be a really boring experience live in between picks," Knapp said. "The NFL wanted to get the fans the live stats and coverage to the fans so they can hear Mel Kiper like the fans at home."

The NFL also distributed radios to every fan at Super Bowl XLVIII in February. Radios have also been distributed during the Super Bowl media day, allowing fans to listen to interviews from six different player or coach podiums.

"For the media day and draft, fans would be lost without them," said Eric Finkelstein, director of events for the NFL. "We're always looking for ways to integrate more technology for an enhanced fan experience, and this is really providing something our fans love."

Live Sports Radio is expected to ship 110,000 units to NFL events this year, up from 5,000 in 2008.

"Most people would kill for our Rolodex of clients," Knapp said. "We've become part of some of the largest events in the world; even with a small shop, we don't plan on slowing down."